The Selling was mixed, but it was Small Caps which took the brunt of the selling.  In the Russell 2000 there was a loss of 814 support, but it was able to dig its heel in at the 20-day MA.  But it's getting more sketchy for longs. The index is looking to resume its under-performance against Tech and Large Caps, which is really bearish all round... The S&P was able to hang on to its breakout, leaning on the 50-day MA for support. There is an opportunity for longs to take advantage of 50-day MA support in the Nasdaq, although it could be a slippy slope if the index was to take a loss tomorrow. For tomorrow it will be a case of bulls digging in at the open, but if after an hour there is no sign of buyers it could turn into a very long day. ---- Follow Me on Twitter Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com . I offer a range of stock trading strategies for global markets which can be Previewed for Free with d

A day of contrasts for the market.  All indices weakened into the close, but Large Caps were able to retain most of their gains but Small Caps gave back the bulk of theirs. The S&P was able to register an accumulation day on improving technical strength. But the Russell 2000 finished near the day's low, but not before it managed an almost 2% gain intraday. Nasdaq trading was closer to the Russell 2000 than S&P.  Relative Strength continued to shift away from Tech to Large Caps - which is bearish in the long run (except for Large Caps!). But the Dow is very close to pressing a new breakout. So for Wednesday it's looking like it will be left to Large Caps to lead with the Dow best positioned to push higher.  Aggressive players may want to go long the Russell 2000 with a stop close to 814. --- Follow Me on Twitter Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com . I offer a range of stock trading stra

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It was a relatively quiet day for the indices.  Losses were small and were on light volume.  There was an interesting contrast in the Russell 2000; the index experienced one of the larger losses on the day, but the loss was countered by a net bullish turn in technicals. The Russell 2000 finished at its 50-day MA and given the proximity of 814 support it offers a good opportunity for buyers tomorrow. The breakouts in the Nasdaq and S&P still hold as true despite today's loss. The other aspect working in bulls favor is the building of a swing low in market breadth; in particular, the Nasdaq Summation Index. Tomorrow could be a day to buy on weakness, particularly if there is a weak start (which might 'oversell' early). ---- Follow Me on Twitter Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com . I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade

Market breadth staged a strong recovery after weeks of declines. The bounce is still a little early for some breadth indicators, but the gain was welcome. The indices enjoyed a powerful move off support and are well positioned for further gains. The Percentage of Nasdaq Stocks above the 50-day MA managed an 8 point gain to make it to 46% of Nasdaq. The Nasdaq enjoyed a higher volume engulfing pattern.  The 'engulfing pattern' is weakened by the lack of an oversold market for the Tech average, but this is an index which is well above nearest support. The feelgood factor extended to other indices.  The Russell 2000 continued to hold the former head-and-shoulder neckline as support and is threatening 830 resistance.  Bulls are well positioned to press their advantage. Likewise, the S&P worked off 1,370 support but has yet to challenge the 2008 high of 1,426. Next week, look for bulls to follow through with new high, continuing the rally started in 2011.

Better stuff from bulls.  The consolidation which has played out over the past couple of weeks broke out to the upside. Technicals improved alongside price action. The S&P managed a net bullish shift in technicals in one day; this supported the breakout and a close above 20-day and 50-day MAs. The Nasdaq managed to post a breakout on higher volume accumulation. Technicals aren't as positive for the S&P but are improving. Supporting the Nasdaq is a strong gain in the semiconductor index,  The index will encounter the first of its supply zones at the 20-day MA, but the recovery has been solid. Finally, the Russell 2000 enjoyed a breakout with a close above 20-day and 50-day MAs.  Technicals continued their improvement with a MACD trigger and +DI/-DI  'buy'.  Relative strength runs in favour of Small Caps over Tech indices (and Large Caps) and this keeps bulls in the driving seat. Tomorrow could see a consolidation, but bulls maintain the edge and

It has taken the best part of a month for markets to record an accumulation day, but today was one such day.  Volume, while higher, was only marginally so; making it a relatively quiet day for anyone not trading Apple (AAPL).  Despite the gain it was a tough market to trade given the bulk of the gains occurred pre-market. The S&P pushed far enough off its 50-day MA to close above its 20-day MA.  It's nicely poised to challenge the 1,422 high and to push some of its negative technicals into positive territory. The Nasdaq was able to regain 3,000 support and finish above its 50-day MA, but it was left below its 20-day MA which may offer shorts something for Thursday. Technicals are weak, but not oversold. The Russell 2000 is also poised to challenge its March 'bull trap', although it still has to break above overhead 20-day and 50-day MAs. Tomorrow offers a good opportunity for some upside follow through on today's accumulation.  Markets at or just be